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Mad Money

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Us 11, Collins 10, Dell 9, Cramer 9, Jim 6, America 5, Google 4, Citibank 4, Texas 3, Jim Cramer 3, Austin 3, Tyco 3, Honeywell 3, Roberts 2, Tim Collins 2, Unitedhealthcare 2, Karen Carpenter 2, S&p 2, Officemax 2, Adt 2,
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  CNBC    Mad Money    News/Business.  (2013) New.  

    February 19, 2013
    6:00 - 7:00pm EST  

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any questions? since we make radiator valves wouldn't it be better if we just let fedex help us to expand to new markets? hmm gotta admit that's better than a few "likes." i don't have the door code. who's that? he won a contest online to be ceo for the day. how am i supposed to run a business here without an office?! [ male announcer ] fast, reliable deliveries worldwide. fedex.
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time for the final trade and a correction. not karen carpenter. not karen carpenter, guy. >> this is the carpenter, but not that version. >> guy? >> use your google machine and check it, but yahoo! is still working. yhoo. >> karen? >> i still like gm. >> josh? >> mentioned energy earlier in the show. get long ieo. i think it keeps going from here. >> the marblettes. >> thanks for watching. back here again at 5:00 thom for more "fast money." don't go anywhere. "mad money" with jim cramer starts right now. i'm jim cramer. welcome to my world. >> you need to get in the game! >> they're going to go out of bit. he's nuts. they're nuts. they know nothing.
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i always like to say there's a bull market somewhere. >> "mad money," you can't afford to miss it. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i'm trying to educate and teach, so call me at 1-800-743-ccnbc. people like -- the s&p falling 7.3%, and the nasdaq climbed 0.68%. >> house of pleasure. it's a natural instinct to fight given how immediate yolk are fights have been, but buy the dips, sell the rips attitude has been the way to go. the way to win since 2000, but it sure isn't winning now. you sold the rips, you sold a ton of stocks a long time ago. you don't have any stocks left. but the charts are breathtaking
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with breakdown all over the place, housing, hotels, lumbers, semiconductor, cable tv, entertainment, packaging, chemicals, drugs, retailers rails, you name it, even the lack to pause to refuel is as unprecedented as i've seen in all my years of investing. no retin-a in sight here. it's a if there's a supply shortage with no stock to be found. everyone's afraid to short now, so the buyers keeping reaching and reaching for more. the rips have been sold and resold. it doesn't matter. the dip buyers have been left tess altar, or you could argue for the slaughter. if this market doesn't catch its breath, so certainly not breadth with a "d" while it has it in spades, hearts and dimes as we said. everything pales in comparison
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to what's driving so much of this market behind the scene. that's the urge to merge. the rush to get married, even the desire to elope on weekends, especially the three-dayers, something we haven't seen in ages. i guess we shouldn't be surprised that we learned yesterday officemax and office depot are trying to merge. >> that was easy. in 1997, the government fought staples from buy office depot because of anticompetitive concerns. these days it might be vital to let them merge to stay in the game. . it's become the mainstay for all of walmart, and where i get my stuff -- costco. it seems as pro-merger as any administration that i've ever seen, like so many other stock that is have gotten bids, these
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two names have been huge winners. officemax has doubled since august, but office depot had tripled in that time. during the sell the rip days, most of these would have been sold and shorted, but the principal clients of these places, small businesses, aren't they supposed to be dying on the vine? isn't president obama swell muching the small business job creator? the republicans like to say that. maybe or maybe just isn't squelching hard enough. otherwise you wouldn't be seeing such monster moves. in other words, business is strong enough to merit companies talking to each other about combining rather than thinking if you stick around and compete, it's almost a matter of time before the other guy keels over. the last man standing game seems like it's history. maybe this is a merger between two companies who failed to keel over. more important, though, it's a merger born of confidence, confidence that despite the runs in the stocks there had much more up side, because things are just plain better than we might
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realize. even though the stocks are up from where they were, they're down huge from when times are going. that's the theme behind almost all the deals we've seen, all the ones worth talking it's the commonalty of the breathtaking numbers of takeovers, in a last year rather than ratcheting up as seems to be the case now. all right. let's start with heinz. i don't know if your super market carries this same one. it's the are you ready skee-daddy verse. what god me about this deal is not that warren buffett saul the intelligence of buying a brand that means ketchup worldwide, but it didn't happen a long time ago. here's hides increaseses earnings per share, expanding internationally yet kept down by a frozen food division or slowing restaurant economy. the darn thing has been ripe for the taking for years and years.
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it always amazed me it hadn't been taken before. the bears are always optimist, lacking in rigor, yet when i questioned why a goldman sachs analyst would put a sell on a great company like heinz, nobody else seemed to think it was odd at all. we've been zero-summing here for ages, and if they're warricking for walk and terr racks, not just caterpillar and deere, now you know it's time to rotate out of heinz. don't we like sell sell sell when we buy buy buy. isn't that the plan? i don't know. that's not the plan for everybody. warren buffett, he doesn't care about sector rotations. he cares about acquires brands, lasting brands for less, some sort of consummate buyer likes brands for less. now it's his. who was really complacent here? i say it was the goldman analyst, now the buyers. how about dell. you really think that dell,
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which supported slightly better than expected numbers, is that that much different than heinz? once again, here's the stock that's been left for dead. nobody even cares, maybe nobody pronounced it dead, yet it simply refused to die, too much catch, too much cunning. heinz has flatlined for -- dell has been going down. you know who cared? michael dell cared, and now he's in a huge fight over pennies on the dollars. dell will get his man, because alas his man is dell. virgin media, third biggest deal of the year is emblematic of the flaw of the sell the rip strategy, virgin had already ripped and ripped big before it got its bid. the odds-on move would have been to short this stock, especially in the -- news corps weakness
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and similar properties. who's to argue with john malone? that's like arguing with michael dell or warren buffett. a trior of billionaire. certainly no more than i want to argue with billionaire rich kinder, who is taking advantage of the market's ridiculously low valuation of oil in the ground versus what you're paying at the pump. in order to steal copono, or maybe you want a slug-fest or give a lecture to larry ellison for his bizarre purchase, a telco stock that had been a free fire zone stock for as long as i can remember. it had been a virtual short sell. i don't feel like arguing with ellison any more than independence to argue with kinder or dell or malone or buffett. i do want to find the stocks that the next billionaires are intent on purchasing. when the richer buying, it makes me a heck of a lot more confident. do you mind if i throw in brian
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roberts, buying the rest of nbc universal, ahead of when he had to. i don't feel like arguing him, because i work for him, but most importantly because i respect him. they don't like to part with a nickel unless they make a dime off of it. you can see what's happening here. tax is behind us, the sequester bark worse than the bite, if there even will be one, and confidence is back, particularly among those with dollars to back it up. i know the first person to say r.i.p. to sell the rips will be hit with a gigantic sell-off. waiting for a dip in the face of a pool of liquidity brought on by the firehoses of buffett, dell, anderson, kinder, malone, roberts, it's like waiting for the pacific to die. i would rather join them. andrew. >> caller: did you see the solo panel outfit in the evening
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balls? >> no, i real the speech. i'm sure he looked dynamite. are you allowed to say that? i take it back if it's incorrect. >> caller: no, for u.s. economic reconstructi reconstruction, and energy holdings recently made the largest national investment in solar at $2 billion are sety and sbwr immediate union -- >> sbwr i'm not that crazy about. solar city i have to do work on. you know, it was my birthday recently. my kids said happy birthday, you ought to get a solar panel. it's like solar circuit, like circuit -- i don't want to do that, but hoar about party city? that's not there, either. but i will tell you that i think the solar city is on to something. if you can get money to put a solar panel on and cut my electric bill, you would be plenty happy. matt in texas, matt? >> hi, jim.
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boo-yah from austin. >> man, austin, we had such a great time when we were in austin, at u.t. it was fantastic. what's up? >> caller: hey, i'm a longtime -- despite, due to -- medicare is a small book of business, which is down over 6%. do you think you have strategy, and in particular international expansion are enough to offset -- >> no, no, these stocks open down and down big. you get this medicare advantage, and they're get to cut it by that much, the stocks will be for sale. there's so many others, take the money out, buy -- you know, that's what's going to happen. anyway, some might be tempted to fight the tape. i know my friend doug cass going back and forth with me, he's a fighter, but why fight it? when you're fighting guys like buffett and dell and anderson,
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kinder malone and roberts, man, they would be rich. just doesn't make sense to me. i say join them. "mad money" will be right back. coming up, losing luster? central banks the world over have their printing presses working around the clock, but while gold has provided cover in the past, has this pressure moment passed? or will it shine again? cramer checks the technicals when they goes off the chart. and later, change the locks? record low rates have reignited the housing market. investors are cashing in. could adt help keep your portfolio as secure as your home? cramer is unlocking the answer, just ahead. plus bright idea? cheap domestic energy is causing industry to reinvest in america, and as manufacturing ramps up, so do the demands for power. don't miss crepers's exclusive with the ceo of american electric power to find out if it
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could give you a charge. all coming up on "mad money." don't miss a second of "mad money." follow on twitter, have a question? tweet cramer, hash tack madtweets. send jim an e-mail to madmoney@cnbc.com, or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. [ male announcer ] any technology not moving forward is moving backward. [ engine turns over, tires squeal ] and you'll find advanced safety technology like an available heads-up display on the 2013 lexus gs.
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there's no going back. on the 2013 lexus gs. try running four.ning a restaurant is hard, fortunately we've got ink. it gives us 5x the rewards on our internet, phone charges and cable, plus at office supply stores. rewards we put right back into our business. this is the only thing we've ever wanted to do and ink helps us do it. make your mark with ink from chase. i've always kept my eye on her... but with so much health care noise, i didn't always watch out for myself. with unitedhealthcare, i get personalized information and rewards for addressing my health risks. but she's still going to give me a heart attack. that's health in numbers. unitedhealthcare. there. i said it. they don't have pictures of my kids. they don't have my yoga mat. and still, i feel at home. could it be the flat screen tv? the not so mini fridge?
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♪ the different free dinner almost every weeknight? or maybe, it's all of the above. and all the rest. am i home? nope. but it almost feels that way. homewood suites by hilton. be at home. okay. [ male announcer ] with citibank's popmoney, dan can easily send money by email right from his citibank account. nice job ben. [ male announcer ] next up, the gutters. citibank popmoney. easier banking. standard at citibank.
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to deposit checks from anywhere. [ wind howling ] easier than actually going to the bank. mobile check deposit. easier banking. standard at citibank. what the heck is happening with this vicious decline in gold? and what are we supposed to do about it? okay. tonight we're going up the charts to answer that question with the help of tim collins, a brilliant technician and my colleague, which you can find by going to thestreet.com. you know i've been fond of gold as an asset class. i think it's an essential part of a well-balanced diversified
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portfolio. lately the price of gold feels like it's fallen off a cliff. even though i think you should always own some gold. i'm not backing away from that, collins suggested this is a time when you should think about owning less of the shiny stuff. what's wrong with the precious metal? take a look at the daily chart of the gld. it does a terrific job of mirroring the price of gold. for collins, this is a picture of a textbook example of what happens when a powerfully bullish long-term trend suddenly loses its mojo. up until this past october gold has been a raging bull market, for over five years. and whenever you get that kind of trend, pretty much out -- well, people buy every single dip. they do it because it works. for years it was a winning strategy, then the trend changes like we saw with gold in
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october. those same dip buyers, sheesh, thee getting slaughtered. gold's bullish up trend went away, but the dip buyers, they refused to give up. what you're seeing is the repetitive pattern of bull traps. just since december alone collins says we've found four trap patterns, one after another after another after another. you get a make sell-off with a big volume with an oversold reading and the two big momentum indicators at the bottom of the chart? the relative strength index, we saul that the rsi. and the stochastics. if the short-term low, the price will test at a key level. that's what happens. that's when the dip buyers sweep in. think about it. each time instead of bouncing, just gets hit with still one more sell-off. look at this.
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it tries to bounce and can't. trying to bounce, can't. tries to bowen, but can't. collins thinks gold has fallen so far so fast it could be defor a 3% to 4% bounce sometimes in the near future. that said, collins does not thinki buyable. as a matter of fact it's sellable. so let's look at the longer-term weekly chart. after rallying for year after year over the last 12 months or so, gold has been trading sideways having formed, wow, here's a new one, a bell cup in hand pattern. it's called that, when a cup and handle comes together correctly it's one of the bullish formations. i'm not kidding. with gold the pattern failed. all it gives us is a broken piece of pottery. a crock, so to speak.
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now, with the broken cup an handle collins think the gld is stuck trading sideways. . and as long as gld is still in this 150 to 175 range, he will endorse it only buys it for trade, not for investment. the reason? this chart says there's no advantage to gang from going long. how it breaks down below 150, then collins think you need to hedge your gold position. this is going to lower. on the other hand, if they can move up over 175, but would be a buy, it's that simple for collins, as long as the gld is caught, he thinks you need to respect the rage and realize the bull it is or the bears have a long-term advantage. even when he do the math on the super long-term monthly chart, you can see the same pattern,
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this 150, 175 range keeps gold contains, for collins' purposes, gold as might as well be in limbo. no edge. given gld's recent 3r678ance collins thinks it makes more sense to be cautious rather than simply neutral. but as much as the gld might be in a difficult spot right now, collins points out it's the single best way to play gold if you insist on playing gold, which i think you have to. check this out compared to some of the miners. as well as the market vectors gold miners etf, gdx, and the absolutely hideous junior gold miners, the gdxj. if you want exposure to gold in this environment, this chart makes it crystal clear that the gld remains the only way to go.
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this is just terrible action, not only has it held up better, but it has also had much less volatility. collins think the loss has done more damage to the mining stocks. in other words the miners have a harder time shaking off than the gld itself. he also nodes when it goes higher, they go up about the same. . so much more up side. this is what we've been telling us for ages. collins has given you the empirical proof you need in the form of the charts. he looked through the largest gold miners and couldn't find a single outperformer in the group. they are the worst stocks at a good time for to bes. the bottom line, i'm a gold bull for ages. that said, based on the charts as interpreted about i tim collins, it might not be the right time to add your position. you need it as insurance.
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it goes up when everything else is going down and gold is a currency. if you're overweight gold, you have to look at these charts, it wouldn't be crazy to trim back your position a bit, and move some of that money with something with more short-term up side. wow. stay with cramer. coming up, change the locks? record low rates have reignited the housing market and vettors are cashing in. today adt, could they help keep portfolio secure as your home? cramer is unlocking the answer, just ahead. i know what you're thinking...
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transit fares! as in the 37 billion transit fares we help collect each year. no? oh, right. you're thinking of the 1.6 million daily customer care interactions xerox handles. or the 900 million health insurance claims we process. so, it's no surprise to you that companies depend on today's xerox for services that simplify how work gets done.
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which is...pretty much what we've always stood for. with xerox, you're readyness. do you ever come out the first weekend after valentine's day, i have some dating advice for your portfolio just like when you're on the prowl for new stocks, look at the stocks for companies that have recently been broken up with. why? those are the stocks where you're most likely to get lucky, finance yeah speak. companies can be big winners when they're splitting up, but after the breakup, that's where the big money may be. as long as is back the right horses, which brings me to tyco, the classic business that came -- turning into what i would describe as a richard
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nixon-like pitiful helpless giants. that's why nearly six years tilingo spun off the health care business, as covidien, and spun off its electronics business as t.e. connectivity, which has been nothing short of spectacular. last october it broke itself up again, it merged with pentair, and for more important for our it spun off the american security division as the adt. corporation. it started trading as an independent company. since then the stock has roared higher. okay. it's rallied more than 30%. ♪ hallelujah back in january s. mike in new york asked us about adt, and if it would run out of steam
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since the spin-off. adt is up less than a buck in the time mike asked us about it, so has adt run out of steam. did they have stock to go higher, or is there a long-term story here. i'll give you a hint. my charitable trust, which you can follow along at actionalertsplus.com owns adt. that's how much stephanie, my comanager, and i liked it. before the spin-off, tyco managed it as what i would describe as a cash cow to finance other businesses. now adt can use its own cash. however, the most important factor is adt is a play on the bountiful amazing. housing recovery. that's one of the strong owes themes in 2013 and beyond. every tie we get a piece of
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positive housing data, we know the homebuilder benefit, but i think the ancillary playing might be better opportunities, including adt. it's the largest residential and small business security company in america. they provide everything from home monitoring services to prevent burglary, to fire alarms and carbon monoxide detectors. this is a $13 billion business and adt is the number one player. not only is it the biggest name in safety and security, it's also really the only pure play out there, making it a prime target. i could sigh a honeywell or united technologies. ultimately making a bid for this company. that would be merely icing on the cake. i would prefer to see them buy other companies in its own line of work to consolidate a fragmented industry. we don't speculate unless the underlying fundamentals are real good, and in adt's case, the
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underlying fimts are excellent. glory be, i love these kinds of businesses, 90% of its revenues are recurring. 92% in the most recent quarter. customers who want adt systems sign up for three-year contracts, and once installed it's hard to switch to another service. they have superior products and can offer at a cheaper price, because the scale is so much larger than the competition. it's sxarchding its offerings. now they're doing medical alerts, remote video monitoring, as well as lighting and other systems. and then there's pulse, it keeps coming back to pulse, an interactive remote home monitoring system. via the web or the smart phone, your ipad, given you the ability to lock the doors, and even
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control the lighting. monitor from often thousands of miles away. this is a much more expensive than the basic security package and the company is trying to get customers to switch to pulse. right now only 3% of customers uses the system, but in the most recent quarter, it represented 18% of what they sold. so this thing is taking off in a major way. you ought to change your website. you don't make it nearly as excited as i make it. they're paying down costs and paying off defendants. a whopping $1.9 million left in the buyback authorization. and adt plans to spend all the money in the next three years. even better, when the company last reported at the end of january, management announced an accelerated buyback program.
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you know, i'm calling that the equivalent of a called shot, with manage bakley coming out and telling you they think their stock is too darn cheap, and they're going to take it away. right here. they can't take how low their stock is. we expect more buybacks to be announced after they're done with this current accelerated systems system. they're going to shall recollection the flow, but the latest quarter was excellent, even though the headline numbers didn't look like anything to write home about. rising just 1.8%, but below the surface, the earnings before interesting and taxes they were better than expected. that income rose 12.9%, beating the analyst expectations by 4%, attrition, the percentage of customers they lot was flat. the company added 250,000 new customers. meanwhile, adt's margin
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expanded. they should only get bigger down the road. like here's the bottom line -- adt may have run up a lot since it was spun off from tyco in the fall, but i think this post-breakup story is just getting started. adt is a terrific pure play security company which i think is a terrific way to play the housing rebound, so i have to believe like i do about housing in general that there's much more room to run. let's go to paul in ohio. paul? >> caller: hey, cramer glad to you to talk to you. >> same. >> caller: i have some honeywell stock, about 220 shares. it's gone up like the highest i've seen it in ra while. first, i'm 67 1/2 years old, so i want to get rid of some stock before i turn 70 1/2 and have to go minimus distribution. so i'm thinking of selling half or so this year, half next year. is this a good time to sell?
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>> i think honeywell is going higher. it's had a gun run. you have a particular situation that seems to me it lends itself to selling. but if you have other stock to selling, i would down that. i think they're doing such a good job. somebody ring the alarm. adt is getting steaming hot. if you're looking for a play on the housing market, adt is a terrific security company that should continue to see a ton of up side. don't move, lightning round is next. jim cramer, you've with one of my heroes. >> i look forward to your show every night. >> thank you for helping beginning investors like me. >> when you talk about the market, i believe you're spot on. >> i love it. every time we watch you, and i have earned and learned. [ woman ] when you own your own business,
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it's a challenge to balance work and family. ♪ that's why i love adt. i can see what's happening at my business from anywhere. [ male announcer ] now manage and help protect your small business remotely with adt. arm and disarm your alarm, watch secure video in real time, and even adjust your lights and thermostat wherever you are. with adt, you get 24/7 protection through our exclusive fast-response monitoring. you can be confident that adt is always there for you. hey, lisa. is that the delivery we've been waiting for? [ male announcer ] and now you can get adt monthly service for your business starting at less than $2 a day. [ woman ] i love the convenience of adt.
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i can finally be in two places at once. [ male announcer ] call today and get adt for less than $2 a day. helping protect your business is our business. adt. always there. how do you keep an older car running like new? you ask a ford customer. when they tell you that you need your oil changed you got to bring it in. if your tires need to be rotated, you have to get that done as well. jackie, tell me why somebody should bring they're car here to the ford dealership for service instead of any one of those other places out there. they are going to take care of my car because this is where it came from. price is right no problem, they make you feel like you're a family. get a synthetic blend oil change, tire rotation and much more, $29.95 after $10.00 rebate. if you take care of your car your car will take care of you.
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it is time. it is time for the lightning
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round. you call in with a stock and i say sell sell sell. and every time i play this sound, and then the lightning round is over. are you ready skee-daddy? time for the lightning round. starting with hope in new york. hope? >> caller: hi, cramer. >> what's up, hope. >> caller: how are you? i'm good, thank you. i'd like your thoughts on truthfulia. . >> it's a housing play. they like zill:which had a good quarter. i still prefer real ogy. peet? >> caller: thanks for taking my call, a pan mannian bank, it advances money -- blx banko latin america. >> i have to tell you, i'm so inclined to like latin america. i think that's an interesting
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bank, but you know where i'm going to send you this? bbba, i think that's better, plus they have a great texas business. that's the bank ton in. jim? >> caller: thanks for taking my call, how about i max. >> i don't know if i want to pay a 52-week high, because i don't know what the schedule is to 3-d. i congratulate them, but let's wait for a pullback. let's go to norm in vermont. >> caller: hey, jim, this is norm from vermont. >> what's going on? >> caller: well, it's cold. i bought green mountain coffee roasters at 24 about six months ago. >> wow. >> caller: what's your opinion going forward? >> i want you to take half of it off the table tomorrow and let the rest one. when you catch a double in a controversial stock like that, and it is controversial, i want you to play with half of it.
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jack? >> caller: i'm from your home state of pennsylvania. >> how are you? >> caller: very well, thanks. i'm well aware of your admonition that hogs get slaughtered. with that in mind, i'd like your take on nly. >> i think ernie will be under pressure there for a while because of the way that the yield curve is. i know sydney spoke about it, probably the greatest book in the world, but boy, is it boring. it reminds me that nly will struggle here. that said i think you should hold on it. even if they cut the dividend a couple times, it's still a good stock. dan in florida. >> caller: dr. cramer, how are you doing? >> i am good. >> caller: i have a problem here. i need some help. csco, but i'm torn between that and hewlett-packard. >> i'm going to make this easy. hewlett-packard is trying to make a come back cisco report add great quarter.
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and sure enough i'ming and this is a good call, and stephanie called me and said -- and you know what? people didn't like it. upon further review, it was a good quarter, and i think people should step up to the plate and buy it. one more. rick in california? >> caller: boo-boo boo-boo ya jim. >> nice. >> caller: amt in particular. >> this grip has doled into its own personal bear market. the short sellers are piling in, because they think the chart is bad. i will say stick with america tower, and stick with cramer! the lightning round is sponsored by t.d. ameritrade. coming up, bright idea? cheap domestic energy is causing industry to reinvest in america.
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and as manufacturing ramps up, so do the demands for power. donnell miss cramer's exclusive with the ceo of american electric power to find out if it could give you a charge. ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade. ♪ [ male announcer ] when you wear dentures you may not know it, but your mouth is under attack. food particles infiltrate and bacteria proliferate. ♪ protect your mouth, with fixodent. the adhesive helps create a food seal defense
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we've got a north american energy renaissance going on right now, with the country now producing more oil and natural gas that we actually know what to do with, but what does that mean for the other fossil fuel, the one hated by environmentalists worldwide? i'm talking coal. coal is no longer king when it comes to power engine railings. almost equal to what we get from natural gas. the swim is not because natural gas has become to cheap, consider aep, the utility with the largest electrical transmission in the nation, as well as being the biggest burner of coal. i've always liked it. it has a sweet 4.1% yield and a terrific new dividend policy makes me like it more. it's turning the big into an
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unregulated utilities. the company got 71 march from last year. it depends on the most hated fuel in the nation, though less than we feared. aep reported last friday that between now and 2020 they're going to have to spend 4 to 5 billion upgrading the coal plants to keep up with the new and existing regulation, though as of late it's learned that ratepayers can't bear it -- that's a big reason why it's moving toward using less coal, so let's check in nick akins. he's the ceo. welcome back to "mad money." >> jim, great to be with you again. >>ite to tell you, this was the most upbeat i've ever heard you. you have increased your dividend rate that you want to give. you've solidified a 4 to 6% growth rate. why is everything breaking your way right now?
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>> oh, i think we spent 2012 clears the decks of a lot of risk. the ohio situation we talked about earlier, certainly getting some of the pow speaker plant activity done, but we're also seeing the economy start to stabilize somewhat. we're hopeful it would pick up during '13. >> is that one of the reasons you took the extraordinary step of increasing the payout, now 60% to 70%? already you're ra terrific payer of dividends. >> oh, yeah, we raised that different range, because we felt like we're going to be a regulated utility in the future, it produces that benefit going forward, so we really believe we're working well in that regulated space. >> now you you mentioned that you have increased confidence about the businesses. in your area, one of the things i thought was most exciting, and you pointed out many times in a terrific, terrific transcript, that you are actual big beneficiaries of this -- all the shale, like when we were out in ohio and utica.
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you are the winner given the big industrial renaissance we're having because of the oil and gas? >> absolutely, jim. we're seeing the eagleford shale in texas take out of. in ohio, as a matter of fact that's been our saving grace in this period where the industrials, particularly on the primary metal side, has been challenged. our service territory is well positioned to take advantage of any renaissance. >> when we were at timkin, they can talk about the cheap power they could have and you're a significant reasons that companies do want to come back to america, this reindustrialization is bringing companies back from companies where the energy is expensive. absolutely. the shale gas activity has al w allowed us to move back and forth from a fuel perspective from coal versus gas depending on the pricing. it's been a distinct advantage for our customers. >> now, you also, i think this
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is a point i've got to make -- you talk about how the epa has seemed to have understood at last your notion that the poor and middle class people are impacted more by increases than anyone else, and maybe they want to start factoring in the xwof rischment of the poor people in your area before jacking up how much you have to spend to meet the new regulations. >> yeah, jim, as you said, we're spending between 4 to $5 billion on environmental retrofitting. if they add greenhouse gas emissions on top of that during this time when the states are already dealing with the cost increases associated with those projects, that's a highly regressive increase in pricing. as you know electric utility supply is highly regressive when you have price increases, and the poor and middle class will feel the effects. it's important to get that transition right and make sure we are advancing in a positive
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fashion on a path that doesn't impair the economy and doesn't inordinately increase the prices for customers. >> at the same time we should point out that you have loudered your emission for sulfur dioxide, for fight russ oxide. it's not like you've been doing nothing. you've been cutting the emissions pretty continually. >> that's right we've reduced them by over 80 to 90% over the decade. and we've the co-benefit of reducing mercury by 85%. when you look at the latest rules in place, we're going to achieve further reductions, so you want to make sure that process is done over time of the we're going tore retiring generation in the 2014, 2015, 2016 time frame, and you retired that coal fire generation, you'll have the immediate benefits of greenhouse gas reductions. we're already on target, the
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industry is, of meeting those emission reductions proposed in the legislation, 17% by 2020. we're on path of that just with the shale gas opportunity in front of us. >> i think you're doing the impossible, by keep everything happy. where far less risk for any of those stocks in that index. thank you mr. akins, for being on the show. >> thank you, jim. guys, increased different payout coming, 52-week high, less risk, doing a lot of things right for even the environmentals that have taken a notice. what can i say? this is why i like a stock like american electric power for we're portfolio. the ceo doing a great job. stay with cramer. oh this is lame,
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you always hear people say i'll say it, too. the results have been missed as best, but bun thing is for certain, people are way too gun-shy to use it. google powered through today. so many wish they were in google. it's the score of a lifetime, but when this terrific
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search-and-destroy the competition juggernaut fell after reporting a miss and gave uncertain guidian, did you use that pullback to buy, or did that move scare the wits out of you? did you use the further pullback another 50 points to put money to work in google? or was that sell-off another one you had to avoid even as you might have been waiting for another leg down? you're waiting for a further pullback. i think the answer is the pullback was wasted on many. it seems like the great growth days were behind them, there were more moving parts where the cost of acquisition continued spending on uncertainly products, all you had in retrospect was the pullback you needed. the one that might have been waiting for, at least making matters worse,ed second, created
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what could have been a nasty-looking head and shoulders pattern. as the technical signal a mountainous top if they didn't hold. it turns out the stock did stop going down, the ship righted itself, the company developed a host of products, and the continuation of the excellent operating system. that's just around the corner. hey, whenever they want it to. not only that, but now google has become the new -- with a sense of excitement, extending the company's dominance to others. what's amazing is while a hedge fund dukes it out, google is giving us growth via its huge pile of cash. that's all that anyone wants. growth as we know, it come from stagnant growth, despite their attractive dividends like the one david einhorn is merging, though he wants it in a preferred form, just doesn't intrigue us.
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here's the real kicker. when google broke down, we just saw a shrinks of the price earnings to multiple which was lower than the average stock in the s&p 500. you've got the highest quality growth stock around for one of the lowest mull pallets in book, where companies like general mills or johnson & johnson, dramatically subpar growth, but traded at much higher multiples as google did at the bottom, or general mills even at the top. the lesson -- when you a bullback without a concomitant, perhaps you should take advantage of it. don't fear what you've been waiting for as the run to $800 shows. that's how the biggest money is ultimately made. stick with cramer. revolutionizing an industry can be a tough act to follow,
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but at xerox we've embraced a new role. working behind the scenes to provide companies with services... like helping hr departments manage benefits and pensions for over 11 million employees. reducing document costs by up to 30%... and processing $421 billion dollars in accounts payables each year. helping thousands of companies simplify how work gets done. how's that for an encore? with xerox, you're ready for real business. [ engine turns over ] [ male announcer ] we created the luxury crossover and kept turning the page, writing the next chapter for the rx and lexus. this is the pursuit of perfection. we all work remotely so this is a big deal, our first full team gathering! i wanted to call on a few people. ashley, ashley marshall... here. since we're often all on the move, ashley suggested we use fedex office to hold packages for us. great job. [ applause ] thank you. and on a protocol note, i'd like to talk to tim hill